"Soared 712% This Year"... As Samsung and SK's 'Two-Pronged Investment' Heats Up, Is It Time to Avoid Chasing the Rally?

[Financial News] As uncertainty over the global macroeconomic outlook eased on news that the United States and Iran had reached a ceasefire agreement, semiconductor materials, parts and equipment stocks are staging a blistering rally in the domestic stock market.
According to the investment banking industry on the 16th, shares of materials, parts and equipment companies have been posting record gains day after day as war risks recede and a rotation into large-cap semiconductor stocks unfolds.
As of the previous day, Jusung Engineering had soared 712.27% this year to 225,000 won, ranking fourth among combined KOSPI (Korea Composite Stock Price Index) and KOSDAQ gainers. HANMI Semiconductor also rose 172.37% to 327,000 won, while major equipment stocks such as WONIK IPS (up 157.00%), HPSP (up 149.25%), Techwing (up 299.55%) and VM (up 231.80%) posted gains far above the KOSPI.
The same concentration is evident in the fund market. According to fund evaluator KG Zeroin, NH-Amundi Asset Management's 'NH-Amundi HANARO Semiconductor Core Process Leading Stocks ETF' rose 10.76% over the past week, taking first place among domestic equity funds. Shinhan Asset Management's 'SOL Semiconductor Front-End Process ETF' also posted a 5.95% return, ranking near the top. The result reflects strong buying into materials, parts and equipment names with improving earnings prospects, while large-cap semiconductor stocks take a breather.

The main driver of the rally in materials, parts and equipment stocks is clearly the aggressive infrastructure investment by key customers Samsung Electronics and SK hynix. Both companies are accelerating capital spending to meet demand from AI servers and data centers.
SK hynix is especially raising market expectations by pushing ahead with a large-scale semiconductor cluster project while setting ambitious long-term targets. The company is currently building four advanced semiconductor fabs in Yongin, Gyeonggi Province. Its first fab, known as 'Y1,' is expected to complete cleanroom construction in February 2027 and begin full-scale production preparations as early as next year. Industry watchers are also continuing to raise expectations with speculation that the company will build a new back-end semiconductor packaging facility in Honam, in addition to front-end production lines.
Above all, SK Group Chairman Chey Tae-won personally fueled investor sentiment toward equipment makers by saying, "By around 2034, when all facilities are completed, total wafer production capacity will be three times higher than it is now."
Samsung Electronics is also speeding up infrastructure expansion at its existing production base while securing new hubs, signaling a sharp increase in equipment demand. The company plans to sequentially complete and ramp up P4 and P5 fabs at the Samsung Electronics Pyeongtaek Campus, where construction is in its final stages, and then begin mass production at a new fab in the Yongin Semiconductor Cluster in 2028.
Market speculation that Samsung will also establish a state-of-the-art semiconductor packaging plant dedicated to advanced back-end processes in Gwangju Metropolitan City is adding to the momentum, serving as a powerful catalyst for a prolonged boom cycle in the materials, parts and equipment sector.
Global investment bank UBS said the semiconductor equipment industry has entered the early stage of a 'supercycle.' Timothy Arcuri, a UBS analyst, said, "Semiconductor equipment suppliers are being given demand forecasts for the next eight quarters by their customers, and in my 30 years of analysis, I have never seen anything like this." He added that "the size of the equipment market will reach $250 billion in 2028."
SK Securities also forecast that investment in semiconductor manufacturing equipment (WFE) will surge from $125 billion in 2025 to $220 billion in 2028.

However, experts advise caution, noting that equipment stocks have risen too sharply in a short period and may face a temporary correction due to valuation pressure. Some names that hit upper limits and fresh highs on the 12th ended lower on the 15th as profit-taking set in, including PSK (-2.47%), WONIK IPS (-4.80%) and EO Technics (-13.24%).
Kim Rok-ho, a researcher at Hana Securities, said, "Since front-end equipment makers' share prices have surged and are now close to their target prices, it would be effective for the time being to hold existing positions rather than chase new buys." He added, "It is time to consider a strategy of approaching materials and consumable parts companies, whose share prices have risen less, from a medium- to long-term perspective."
Han Yong-hee, CEO of Growth Research, also said, "Given the timing, it would be better to focus on materials and parts stocks such as Samyang EnCem, which is expected to benefit from the full-scale shift to higher-layer NAND, and TCK, a maker of consumable etching parts."
[email protected] Moon Young-jin Reporter